-The Above Table Shows the Distribution of Income in Two

question 147

Essay

$$\begin{array} { l c c } { \begin{array} { c } \text { Household } \\\text { percent age }\end{array} } & \begin{array} { c } \text { Percent of } \\\text { income } \\\text { Alpha }\end{array} & \begin{array} { c } \text { Percent of } \\\text { income } \\\text { Beta }\end{array} \\\hline \text { Lowest 20 percent } & 5 & 3 \\\text { Second 20 percent } & 10 & 6 \\\text { Third 20 percent } & 20 & 12 \\\text { Fourth 20 percent } & 30 & 24 \\\text { Highest 20 percent } & 35 & 55 \\\hline\end{array}$$
-The above table shows the distribution of income in two imaginary countries,Alpha and Beta.
a.In the figure below,draw the Lorenz curves for Alpha and Beta.

b.Compare the distribution of income in Alpha with that in Beta.Which distribution is more unequal?
c.What would be the distribution of income in a country with perfect income equality?

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